FTSE TPI Climate Transition Index Series

Designed to capture company progress for the low carbon shift.

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The FTSE TPI Climate Transition Index Series is designed to reflect the performance of global and diversified indices, where constituent weights vary to account for risks and opportunities associated with the transition to a low carbon economy. Constituent weights are based on five key climate considerations: company exposure to green revenues, fossil fuel reserves and operational carbon emissions, as well as companies' climate governance activities (aligned with the Taskforce on Climate-related Financial Disclosures’ recommendations) and forward-looking commitments to carbon emission pathways (aligned to the Paris Agreement and 1.5°C/below 2°C warming scenarios).

The indices combine data and analysis from FTSE Russell and the Transition Pathway Initiative (TPI).

FTSE Russell’s partnership with the Transition Pathway Initiative (TPI)

Stephanie Maier, Global Head of Sustainable at FTSE Russell, explains how our long‑standing partnership with the TPI, supported by over 150 investors worldwide, underpins FTSE Russell’s TPI climate transition indices.

Key features of FTSE’s TPI climate transition indices

Lee Clements, Head of Applied Sustainable Investment Research at FTSE Russell, discusses some of the key features of the indices that may help the challenge investors face in balancing sustainability objectives with investment risk.

The index series design incorporates five key climate data inputs from the Transition Pathway Initiative (TPI) Core Assessments and FTSE Russell's climate framework:

Fossil fuel reserves: Underweight companies with fossil fuel reserves

Carbon emissions (Scopes 1 & 2): Over/underweight companies according to their greenhouse gas emissions while applying sector neutrality

Green revenues: Overweight companies generating revenues from the global green economy

Management quality: Over/underweight companies based on the extent to which they are managing the risks and opportunities related to the low-carbon transition and how they are addressing key aspects of the Taskforce on Climate-related Financial Disclosures (TCFD)

Carbon performance: Over/underweight companies according to the extent to which they are committed to carbon emissions pathways that are aligned with 1.5°C/below 2°C warming scenarios
The index series comprises of:

FTSE All-World TPI Transition ex Fossil Fuel ex Tobacco ex Controversies Index

FTSE All-World ex Japan TPI Climate Transition Index

FTSE Australia 100 TPI Climate Transition Index

FTSE Australia 200 TPI Climate Transition Index

FTSE Australia 300 TPI Climate Transition Index

FTSE Developed TPI Climate Transition ex Coal ex Controversies ex Nuclear ex Tobacco Index

FTSE Developed ex Korea TPI Climate Transition Index

FTSE Developed ex Australia TPI Climate Transition Index

FTSE Emerging TPI Climate Transition Index

FTSE Japan TPI Climate Transition Index

FTSE New Zealand TPI Climate Transition Index

Russell 1000 TPI Climate Transition Index
It is designed to provide:

A clear view of company alignment with climate transition

An approach designed to achieve demonstrable improvements across all climate parameters while managing tracking error relative to the benchmark

Transparent index construction that supports investor stewardship and corporate engagement activities
The Transition Pathway Initiative (TPI) is a global initiative led by asset owners and supported by asset managers, aimed at helping investors and other stakeholders assess company, bank and sovereign preparedness for the transition to a low-carbon economy and supporting efforts to address climate change. More than 155 investors globally, representing approximately US$87 trillion¹ combined Assets Under Management and Advice, have pledged support for the TPI. FTSE Russell has been the data provider for the TPI since 2017.

¹2025-state-of-the-corporate-transition-2025.pdf

Factsheets
Methodology
Key resources

Building a climate transition equity index

Hannah Layman, Head of Sustainable Index Research & Design at FTSE Russell, highlights how TPI scores can be used directly in index construction and the ways in which they can be applied.

Navigating the climate transition with TPI Management Quality Scores

Sam Chenoweth, Strategy & Partnerships Manager at FTSE Russell, explains how the TPI Management Quality scores support the use of climate metrics in investment decision‑making and stewardship.